You're going to buy a home from Tuscaloosa homes for sale. Congratulations! Our real estate agents are always thrilled to help clients through this process — which can be complex, especially for first-time home buyers. You'll need to start assembling your papers early into the process, as you seek a loan for a mortgage. The paper gathering continues through the closing — and after the closing. Let's have a look at what our experienced real estate staff recommends as you tackle your paperwork.

The Papers You'll Need

You'll need a slew of papers to launch and wrap up the home-buying process. Here are some of them:

• W-2 and other employment forms
• Letter from your employer about employment status
• If you're self-employed, business tax returns, plus profit and loss records
• Credit card statements
• Bank statements
• Recent tax returns
• Student loan or car loan statements
• Retirement and brokerage account statements
• Titles of assets (current home or homes and vehicle or vehicles
• Residence history (informal list of addresses for recent years
• Proof of additional income
• Identification papers

Pre-approval
You'll need several documents for getting pre-approval, which is the process for determining how much money you can borrow to buy a home. A pre-approval letter is from a lender and says the lender is tentatively open to lending you a certain amount.

Gather together these documents: 

• Identity papers, including driver's license, Social Security card, or passport; list of residential addresses for past recent years.
• Employment papers, including pay records, W-2 or self-employment tax returns for two years; list of employers for the past 10 years or so
• Income proof, including bank statements dating 60 to 90 days for all accounts; documentation for any income besides employment; banking records for business if self-employed earnings
• Assets, including statements for all financial accounts; proof of ownership for vehicles and property; copy of gift letter if the gift is for a down payment
• Debts, including statements dating 60 to 90 days for credit cards, auto loans, personal loans, or student loans
• Credit history, including a credit report and rental history, if you have one, plus a leased car

Offers

During the offer phase of the buying process, you'll need different paperwork. The main thing you'll need is proof of earnest money. You will put this deposit down to prove your intent to buy the home. It will be paid when the purchase agreement is signed, and then held in escrow until the closing. Typically, the amount is 1 percent of the home's purchase price. This money should be ready to go before signing the contract. It should be easy to access.

Closing

You'll need a number of documents when you're ready to close. This is when it would be best to be working with an agent or a real estate attorney. Either of these individuals can assemble the paperwork you'll need.

Closing documents include: proof of homeowner's insurance; loan application; closing disclosure; copy of the purchase contract; and if it's a new construction home, a certificate of occupancy.

After-closing Documents

If you're working with a real estate agent or attorney, your agent will remind you that you need the documents listed below for the after-closing. If you're doing the sale yourself, you'll need to have all these documents ready after the closing paperwork is signed.

Documents you'll need for after-closing: home title (held by title company till the mortgage is paid off); deed of trust or mortgage; note; deed; title insurance policy; affidavit of title; initial escrow statement; transfer tax declaration.

Getting all these papers together is a bit of work, but working with a real estate agent will make it easier. Contact us today with questions.